DiageoFRA:GUI +1.59%67 EV-to-OCF is 17.04 as of Jun. 24, 2026, which is 35% below its 10-year median of 26.41. GuruFocus rates FRA:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.76 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 213 Beverages - Alcoholic companies, Diageo ranks worse than 72.3% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Diageo's Enterprise Value is €60,016 Mil.
Diageo's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was €3,523 Mil. Therefore, Diageo's EV-to-OCF for today is 17.04.
The historical rank and industry rank for Diageo's EV-to-OCF or its related term are showing as below:
FRA:GUI'
s EV-to-OCF Range Over the Past 10 Years
Min: 15.34 Med: 26.41 Max: 42.64
Current: 17.04
During the past 13 years, the highest EV-to-OCF of Diageo was 42.64. The lowest was 15.34. And the median was 26.41.
FRA:GUI's EV-to-OCF is ranked worse than 72.3% of 213
companies
in the Beverages - Alcoholic industry
Industry Median: 9.4
vs FRA:GUI: 17.04
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-06-24), Diageo's stock price is €18.185.
Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was €0.926. Therefore, Diageo's PE Ratio (TTM) for today is 19.64.
Diageo (FRA:GUI) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Diageo's share price for today is €18.185.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was €0.926.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Diageo EV-to-OCF Related Terms
Diageo EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Diageo's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Beverages - Wineries & Distilleries subindustry, Diageo's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diageo EV-to-OCF vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Diageo's EV-to-OCF falls into.
Diageo's current Enterprise Value is €60,016 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was €3,523 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Diageo (FRA:GUI) has a EV-to-OCF of 17.04 as of Jun. 24, 2026. This is 35% below median its historical median of 26.41. Over the past decade, Diageo's EV-to-OCF has ranged from 15.34 to 42.64. According to the industry distribution chart, Diageo ranks #154 out of 213 companies in the Beverages - Alcoholic industry, placing it in the top 72.3%.
Is Diageo's EV-to-OCF too high?
Diageo's current EV-to-OCF of 17.04 is 35% below median its 10-year median of 26.41. Over the past 10 years, this metric has ranged from a low of 15.34 to a high of 42.64. The Beverages - Alcoholic industry median EV-to-OCF is 9.40. Diageo's value of 17.04 is 81.3% above this industry median. Based on the distribution chart, Diageo ranks #154 out of 213 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, Diageo has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's EV-to-OCF compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #154 out of 213 companies for EV-to-OCF. This places Diageo in the lower half of its industry. The industry median EV-to-OCF is 9.40. Diageo's value of 17.04 is 81.3% above this benchmark. Historically, Diageo's own EV-to-OCF has ranged from 15.34 to 42.64 over the past decade. While the company's 10-year median is 26.41 vs. the industry median of 9.40, Diageo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Beverages - Alcoholic company?
The median EV-to-OCF among Beverages - Alcoholic companies is 9.40, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current EV-to-OCF of 17.04 is 81.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Beverages - Alcoholic industry, the median EV-to-OCF is 9.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current EV-to-OCF is 17.04, which is 35% below median its own 10-year median of 26.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (FRA:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.76, compared to a current price of €18.19 — trading 34.5% below its estimated fair value. The current EV-to-OCF is 17.04, which is 35% below median its 10-year median of 26.41 and 81.3% above the Beverages - Alcoholic industry median of 9.40. Diageo's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Diageo (FRA:GUI), the current EV-to-OCF is 17.04 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diageo (FRA:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €18.19 is trading 34.5% below its estimated GF Value™ of €27.76.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for FRA:GUI:
EV-to-OCF: 17.04 (35% below median its 10-year median of 26.41)
GF Value™: €27.76 vs. price of €18.19 (34.5% below fair value)
Industry Position: 81.3% above the Beverages - Alcoholic median (#154 of 213)
No single metric tells the full story. See the FRA:GUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
67GF Score
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